2025-10-07 15:48:29

Liquidity Provision on STONfi

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[1] | The Foundation of Swaps

Using a DEX for token swaps is a common activity, but it relies on another crucial function. On the $TON blockchain, this involves users who supply the liquidity that enables every trade to happen smoothly.

[2] | How Pools Function

This is done through liquidity pools. Participants provide two tokens of equal value and receive a small part of every swap fee in that pool, usually between 0.01% and 0.2%. This fee is shared among all providers based on their portion of the total value locked.

[3] | Simplified Entry

STONfi enhances this with Arbitrary Provision. This allows you to enter a pool with just one token from the pair. There is no need for a separate swap first, as the smart contract manages the entire process for you automatically.

[4] | Additional Farming Rewards

For selected pools, Farming offers a fixed daily reward distributed to liquidity providers. This is separate from the pool's base earnings. To participate, you provide liquidity to a farming-enabled pool and then lock your received LP-tokens in a dedicated smart contract.

[5] | Protection for Providers

The IL Offset mechanism, currently for the STON/USDT pool, provides full coverage for impermanent loss on price movements up to 2x. It protects a specific part of the pool's TVL, with an automatic compensation of up to $100 in STON tokens for all participants.

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